Chapter 7 Business Bankruptcy

Posted October 1st, 2009 by BankruptcyLawyer

Chapter 7 Liquidation Attorney

The current economic environment has made it more and more difficult for businesses to keep up with their overhead and debts. Unfortunately for some, the overwhelming debt is too much and the company is no longer able to stay in business.

How Business Liquidation Works

In Chapter 7 bankruptcy, the bankruptcy court selects a trustee to liquidate the business’s assets and distribute the proceeds to the business’s creditors. After the process is completed, the business ceases to exist and so do the debts.

Although Chapter 7 bankruptcy means the business has to shut down, it does have certain advantages, it announces the end of operation of the business and the creditors will be halted from undertaking collection against the business.

Business Bankruptcy Alternatives

A business approaching bankruptcy can have its local bankruptcy lawyer or law firm file for Chapter 7, Chapter 11 or Chapter 13 bankruptcy. Chapter 7 is the sole option that involves forfeiting the business assets to its creditors. Alternative forms of bankruptcy allow a bankruptcy attorney to restructure the business, pay back most or part of the debt, and keep the business operational.

To learn more about bankruptcy in San Antonio, you can schedule an appointment for a free initial consultation with one of the members of our legal team. Just call (210) 807-4252 or contact our offices online.